In the late 19th century,labor arbitration was first implemented in the railway industry in America for the prevention and resolution of collective labor conflicts.With the evolution of practices,legislation,and judicial decision,several effective rules were institutionalized in the Railway Labor Act of 1926,such as voluntary arbitration,permanent arbitration board,arbitrators named by interested parties,arbitration for both minor and major disputes,final and conclusive arbitration award etc.,which established a solid foundation for the current American labor arbitration system. Compared with conciliation,mediation and litigation,arbitration is a more advantageous and effective approach for the long-lasting and complicated industrial relations because of its specialty and authority.Therefore,a historical research of American labor arbitration system is of great significance for the development of labor arbitration and conflicts resolution in China.